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Wednesday, May 24, 2006

New Realtor Ads

People across the country might be surprised to see a Realtor® from their own community on national television, as the National Association of Realtors® launches a new television advertising spot, “Entrepreneurs,” during the Realtors® 2006 Midyear Legislative Meetings & Expo this week in Washington, D.C. The new ad features an all-Realtor® cast who explains their commitment to helping their neighbors achieve the American dream of homeownership.

For many recent home purchasers who used exotic mortgages, the 'dream' of homeownership will become their American nightmare. Their interest rates will adjust upwards at the same time when they have to start paying principal.

One of the Realtors® in the commercial is Josephine Gleason from Roswell, Ga. Josephine has been living and working as a Realtor® in her community since 1979. “Helping people find a piece of the American dream is the best job in the whole world,” she said.

Pass the kool aid. :-( Josephine, Have you ever warned someone that using an interest only ARM as a means for 'affording' a house is a bad idea?

Other Realtors® in the commercial are Alma Alden from Dallas; Kevin Borman from Grand Junction, Colo.; Barb Cooper from Austin, Texas; Taylor Jernigan from Montgomery, Ala.; Pollyanna Snyder from San Clemente, Calif.; and Larry Spiteri from San Ramon, Calif. “I’m a small businessman just like the owner of the coffee shop on the corner,” said Larry. “Being a Realtor® is the all-American job.”

All American job? Puhlease! Soon, Realtors® may be as popular as used car salesman.

I would venture so go as far as saying that, already, a Realtor today has as much respect and admiration as a used car salesman. Realtors, infact, may turn out to be even LESS popular than used car salesman. When a used car salesman rips you off, you loose a few thousand.

When a realtor rips you off it's much different (puts you in home you can't afford, riles you up so you get in a bidding war, overpaying, while at the same time (as in these days) snagging a listing from a seller based on price with a plan to immediately make the seller drop it)

When a realtor rips you off, you're out by tens of thousands, if not hundreds of thousands.

Glad to know I'm better looking than most used car salesman. I know it's very annoying but public opinion of realt whores has gone up significantly in recent years according to surveys done by the industry. It's no accident. A lot of $$$ has gone into PR on this topic as well as higher standards of ethics adopted, etc.

At the same time, one poster noted real estate going the way of investment business (financial services). That is correct and will continue.

I think much of the vitriol is towards listing agents here versus selling agents (buyer). When someone hires a realtor for an agreed commission, that is a decision made by 2 willing parties. Instead of lambasting the realtor who is doing what most people should try and do in that scenario in our capitalist system--make a profit--why denigrate the owner who made the decision. They hold the final say in the matter--not the realtor.

At same time, it is my opnion that listing agents will become a thing of the past--like travel agents--in the next 10 years. The MLS sells houses--not open houses, not pictures in the paper, etc. Since discounters have come onto the scene--things will/are changing significantly. I believe transactions will be eventually handled by one realtor earning a 3% commission since they often work w/ the buyer over a year before entering a contract.

So there you go, a brutally honest realtor.

And believe it or not, many of us have always warned buyers about ARMS and interset only loans--to the point of strongly discouraging them. Why you seem to think there is an inherent lack of integrity in realtors is beyond me--a bit paranoid or unbojective of you. If you are endeavoring to be an authority on the subject, why not put your emotions on the back burner and be purely analytical--not a jerk (again a euphemism). I suppose it's your blog so it's your choice.

"--a bit paranoid or unbojective of you. If you are endeavoring to be an authority on the subject, why not put your emotions on the back burner and be purely analytical--not a jerk (again a euphemism). I suppose it's your blog so it's your choice."

This is definately the wrong site for you if you expect even a little objectivity. Most posters examplfy that it's just easier to blame somebody else, flippers, realtors, Fed, etc., rather than take personal responsibility.

I think some of the venom you direct at realtors is mis-directed. Sellers agents talk up the house, buyers agents give insights into the market and the neighborhood, but its the mortgage broker that explains to the buyer what their lending options are. I don't think that buyer's agents typically pressure their buyers about what kind of loan they should get (at least that hasn't been my experience). They might say, "if you want this house, then $X would be a strong offer" but then its up to the buyers (and their mortgage broker) to figure out if they can afford to offer X. If the types of loans are being poorly explained, that responsibility lies with the mortgage brokers. And let's not forget that it's the buyers who take out these loans in the first place, and who must live with the consequences of their decision.

It's not the consumer's fault for not having any idea what they heck they are agreeing to! It's all the fault of the shadowy and nefarious housing industrial complex! The buyers are all child-like and innocent and have no idea what all those big words and numbers are. The buyers can't do any research on the Internet to get more information before they commit themselves to a mortgage. The housing industrial complex has made sure that no such information outlets exist and that buyers are totally and completely dependent on the evil real estate agents!

If it's just the seller's agents (the listing agents) that are to carry most of the blame of the perceived dishonesty in the real estate trading trade, then I can provide you a personal example that clearly shows that a realtor, whether listing or buyer's agent, is after one thing only and at any cost to their purported "clients".

For the fall and early spring this year, I worked with a realtor looking for a condo in the DC area. When my friends, in an effort to enlighten me in all aspects of purchasing a condo in DC, gave me a copy of articles that started coming out of the Washington Post late last year, showing the downsides to purchasing a condo at this time in this area, she dismissed them, and told me not to read the articles.

When the articles became more negative and started coming out almost every weekend, she became more outwardly angrier that I would dare read them. She wanted me, as a buyer, to be in the dark about my purchasing decision. That alone makes her dishonest - trying to keep her clients un-informed.

Another example of this same realt-whore's dishonesty. Last fall, when I found a condo I liked while walking by, she vehmenently critized the builder, PN Hoffman. She said they made horrible condos with poor construction and were known in industry to have their condos fall apart after a few years. But then earlier this year, right before I dumped her, she took me to a PN Hoffman condo and just praised the builder about their cool designs, how their condos are like a brand name, and very desirable. Reason for this complete flip-flop, I asked? Found out PN Hoffman would not pay any buyer's commission as a policy, until recently, when they changed it to pay a buyer's commission.

Again, instead of telling me last year that she wouldn't get paid with a certain builder, she scared me away from them.

Unfortunately, I don't think realtors even realize how dishonest they are in their aim to collect on the commission.

Just a comment from an RE Broker, if you are working with an agent you don't like or don't trust, just say "You're fired".

People in the brokerage business for the long term don't care about losing one sale or one listing or one commission. They strive to provide good service, correct advice and client loyalty because they know this will bring long term rewards in the form of referred clients.

Sounds like you got someone who lives and works deal-to-deal, a sure way to burn out.

When someone hires a realtor for an agreed commission, that is a decision made by 2 willing parties.”

So, you give out your MLS password to your clients? Didn’t think so. One of those “willing” parties holds all the info. The realtors MLS (MRIS) password protected site has much more information than the watered down public version. Current Homes on Market/Current sales/re-list data and much more. One of these parties has access to the lock box and MLS. The other has to do all the research.

Speaking of lock boxes, eventually the MLS will be publicly available. There will be no need for realtors other than to open a lock box. How much commission do you pay just to have someone drive out and open a combination lock? Come to think of it, that’s just about all a realtor is good for now.